Is Hedging Allowed at FTMO?
The Simple Answer
Yes, on a single account. FTMO’s Forbidden Trading Practices allow opposite positions when they are entered on one simulated account, so a same account hedge is fine. However, opposite positions coordinated across connected accounts, other providers or the Program Group are prohibited, and hedging used to distribute profit across days and dodge the Best Day Rule is also banned.
What Is Allowed and What Is Not
How Hedging Works at FTMO
FTMO frames hedging inside its manipulation rule. The firm forbids entering opposite positions for manipulative purposes across connected accounts, accounts with other providers, or accounts in the Program Group. Crucially, it carves out one exception: entering such positions on a single simulated account. Therefore a same account hedge is allowed.
The prohibition targets coordination across accounts. Specifically, running long on one account and short on the same instrument on another is treated as manipulation, and the rule reaches accounts held with different operators as well as other FTMO accounts. As a result, cross account and cross firm hedging are both out.
Additionally, FTMO bans hedging used to game its metrics. Holding opposing positions on the same or highly correlated instruments to distribute profit across multiple days, in order to circumvent the Best Day Rule, is prohibited even when the structure looks like ordinary risk management.
What Counts as a Breach at FTMO
Cross account hedging and metric gaming are the clear breaches. FTMO reserves broad corrective actions, including removing simulated trades from your history, restricting platform access, disqualifying you from the Evaluation Process, forfeiting rewards, or terminating all agreements.
By contrast, a hedge kept on one account falls inside the stated exception, so it does not breach the manipulation rule on its own. Ultimately the safe path is to keep both legs on a single account and avoid using a hedge to distribute profit across days.
Final Comments
Overall, FTMO permits single account hedging but treats cross account and cross firm coordination as manipulation. In short, one account and a genuine hedge is fine, while pairing accounts or spreading opposite exposure across providers is prohibited. By contrast with firms that ignore correlated pairs, FTMO also watches hedges that merely distribute profit across days to beat the Best Day Rule, so intent matters as much as structure.
Related Pages
FAQ
Is hedging allowed at FTMO?
Yes, on a single simulated account. FTMO’s Forbidden Trading Practices carve out an exception for opposite positions entered on one account, so a same account hedge is permitted.
Can I hedge across two FTMO accounts?
No. Coordinating opposite positions across connected accounts, accounts with other providers, or accounts in the Program Group is treated as manipulation and is prohibited.
Does FTMO allow hedging against another firm?
No. The rule covers accounts held with various operators, so opposite positions coordinated across a different provider are prohibited.
What hedging behaviour breaches the Best Day Rule?
Holding opposing positions on the same or highly correlated instruments to distribute profit across multiple days, in order to circumvent the Best Day Rule, is prohibited.